Calculate the return on assets and the return on shareholders' equity for both companies. (Round answers to 1 decimal place, e.g.15.1%.)Cool BreweryNorthern Beer11.2222.21Return on assets17.6630.40Return on shareholders' equityeTextbook and MediaX Your answer is incorrect.Calculate the debt to equity ratio for both companies at the end of 2020. (Round answers to 2 decimal places, e.g. 0.84.)Cool BreweryNorthern Beer1.63:10.39:1Debt to equity ratioeTextbook and MediaX Your answer is incorrect.Calculate the net debt as a percentage of total capitalization for both companies. (Round answers to 1 decimal place, e.g. 15.1%.)Cool BreweryNorthern Beer6228.50%Net debt as a percentage of total capitalization (Common-size analysis and differences in profitability and leverage)Comparative fınancial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands):Cool Brewery Ltd.Northern Beer Ltd.2020201920202019Net sales$214,040$40,450Cost of goods sold100,85016,600Operating expenses81,36014,570Interest expense7,890390Income tax expense4,6201,090Cash11,690$9,4904,670$2,680Other current assets77,82083,8608,5006,950Long-term assets (net)191,930193,34030,61030,120Current liabilities75,22059,2303,9204,280Long-term liabilities99,310114,9407,2407,050Share capital52,60044,90017,80015,000Retained earnings54,31067,62014,82013,420

Financial ratios are calculated to determine the financial position of the company. These ratios…

Calculate the return on assets and the return on shareholders' equity for both companies. (Round answers to 1 decimal place, e.g. 15.1%.) Cool Brewery Northern Beer 11.22 % 22.21 Return on assets 17.66 30.40 Return on shareholders' equity eTextbook and Media * Your answer is incorrect. Calculate the debt to equity ratio for both companies at the end of 2020. (Round answers to 2 decimal places, eg. 0.84.) Cool Brewery Northern Beer 1.63:1 0.39:1 Debt to equity ratio eTextbook and Media X Your answer is incorrect. Calculate the net debt as a percentage of total capitalization for both companies. (Round answers to 1 decimal place, e.g. 15.1%.) Cool Brewery Northern Beer 62 % 28.50 Net debt as a percentage of total capitalization

Calculate the return on assets and the return on shareholders' equity for both companies. (Round answers to 1 decimal place, e.g. 15.1%.) Cool Brewery Northern Beer 11.22 % 22.21 Return on assets 17.66 30.40 Return on shareholders' equity eTextbook and Media * Your answer is incorrect. Calculate the debt to equity ratio for both companies at the end of 2020. (Round answers to 2 decimal places, eg. 0.84.) Cool Brewery Northern Beer 1.63:1 0.39:1 Debt to equity ratio eTextbook and Media X Your answer is incorrect. Calculate the net debt as a percentage of total capitalization for both companies. (Round answers to 1 decimal place, e.g. 15.1%.) Cool Brewery Northern Beer 62 % 28.50 Net debt as a percentage of total capitalization

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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